Dollar Technical Damage, but moderating recovery possible
Fundamentals may start to firm for the dollar but for now the technicals are painting a bleak picture in spite of some short term signs of life.
I am going to connect this posts to other trades with AUD, EUR, GBP, and commodity dollar pairs to sync it with the overall trend in the dollar
The trend is down as indicated by the red colored 200 period moving average. Price is trading below the 200 moving average on this 3 hour chart. But I do believe it may cross above soon in light of some news items and overall supply and demand dynamics.
For the bears, there is still chance for them to win out in the short term because of the measuring objectives I cited on this chart. Between 92.99 and the head, there is a completion of the entire head and shoulders measuring objective at 91, but we are not there yet!
I am getting more bullish on the dollar fundamentally but technically we'll have to see how these zones of demand act as support points at 91.86, because in our most recent time frame the buyers started printing bullish candles. and the green shaded box tested several times to be strong enough to drive price to 95. It would only take a move of 100 points to drive price above the 200 period anyway.
I would argue that we completed most of the selling but time will tell. The trend is down until maybe this zone proves to be a worthy point of support.
I am going to connect this posts to other trades with AUD, EUR, GBP, and commodity dollar pairs to sync it with the overall trend in the dollar
The trend is down as indicated by the red colored 200 period moving average. Price is trading below the 200 moving average on this 3 hour chart. But I do believe it may cross above soon in light of some news items and overall supply and demand dynamics.
For the bears, there is still chance for them to win out in the short term because of the measuring objectives I cited on this chart. Between 92.99 and the head, there is a completion of the entire head and shoulders measuring objective at 91, but we are not there yet!
I am getting more bullish on the dollar fundamentally but technically we'll have to see how these zones of demand act as support points at 91.86, because in our most recent time frame the buyers started printing bullish candles. and the green shaded box tested several times to be strong enough to drive price to 95. It would only take a move of 100 points to drive price above the 200 period anyway.
I would argue that we completed most of the selling but time will tell. The trend is down until maybe this zone proves to be a worthy point of support.